Victoria’s Secret parent L Brands swings to surprise Q2 profit

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Shares of L Brands Inc. rallied more than 5% in the extended session Wednesday after the company behind Victoria’s Secret and Bath & Body Works reported a surprise adjusted profit for its second quarter, and sales also came in above expectations. L Brands said it lost $49.6 million, or 18 cents a share, in the quarter, contrasting with earnings of $37.6 million, or 14 cents a share in the year-ago quarter. Excluding one-time items, the company earned 25 cents a share, compared with earnings of 24 cents a share a year ago. Sales fell 20% to $2.32 billion, compared with sales of $2.90 billion a year ago. That includes a drop of nearly 40% for Victoria’s Secret sales in the U.S. and Canada, the company said. Analysts polled by FactSet had expected an adjusted loss of 38 cents a share on sales of $2.19 billion for the quarter. L Brands did not provide third-quarter guidance thanks to “the continuing high level of uncertainty in the current environment.” The company’s stores were closed off and on in the quarter due to the COVID-19 pandemic, but as of the end of the quarter most Bath & Body Works and Victoria’s Secret stores in North America have reopened, L Brands said. Shares ended the regular trading day up 1%.

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